Prime Super appoints new custodian

Prime Super has appointed Citi Securities Services as its new custodian after a seven-month search, breaking ties with NAB Asset Servicing (NAS) as it plans its exit.

The $6.7 billion industry fund's decision to award the new mandate to Citi Securities Services follows NAB Asset Servicing announcing its intention to wind down custodial operations last November, wrapping up a 16-year custodial partnership with Prime Super. The big four bank decided to close its Asset Servicing business by 2025 following a strategic review and mandate losses.

"Prime Super's focus on members has been the driving factor in the appointment of our new custodian and the fund looks forward to establishing a strong relationship with Citi over the coming years," commented Prime Super acting chief executive Remo Memmolo.

"We recognise Citi's capabilities and reputation as a global custodian and believe the partnership will continue to enable Prime Super to serve our members with the highest quality services."

Citi Australia and New Zealand head of securities services Mark England said the firm was thrilled to partner with Prime Super.

"Once onboard, Prime Super will be able to leverage Citi's experience, capabilities and global network to support the delivery of increased member value and improved investment outcomes," England said.

Meanwhile, Citi revealed yesterday an enhancement to its exchange-traded fund (ETF) custodial services, introducing dual-access ETF capabilities that allow investors to access funds through both exchange trading and traditional unlisted distribution channels.